I have some difficulties with the “answer“ that the Bundesbank gave me recently related to the German gold reserves. Not only that they brushed me off – no, they can’t even treat individual questions individually.
By Lars Schall
Note: for the article „Some Justified Questions for the German Bundesbank,“ go here:
http://www.larsschall.com/2010/12/01/some-justified-questions-for-the-german-bundesbank/.
Let’s have a flashback via this “Dispatch“ at GATA’s website that was posted December 1, 2010 by Chris Powell under this link:
http://www.gata.org/node/9363.
Bundesbank joins Fed in demanding secrecy for gold swaps
Dear Friend of GATA and Gold:
Germany ’s Bundesbank today joined the U.S. Federal Reserve in demanding secrecy for gold swap transactions involving those central banks.
The Bundesbank brushed off 13 specific questions posed by the German journalist Lars Schall, whom GATA had encouraged to pose the questions. The first of the questions was: „Does the Bundesbank have gold swap arrangements with the United States / Federal Reserve?“
In reply to that question and the 12 others, the Bundesbank press office told Schall:
„In managing foreign reserves, the Bundesbank fulfils one of its mandated tasks as an integral part of the European System of Central Banks (ESCB). We trust you will understand that we are not able to divulge any further information regarding this activity. Particularly with respect to the confidential nature of information about where gold holdings are kept, we are unable to go into any greater detail concerning exact locations and the quantities stored at each of these. Likewise, owing to the strategic nature of the activity, we are not at liberty to provide you with more detailed information about gold transactions.“
Schall sought an explanation from the Bundesbank about its activity in the gold market and the security of German gold reserves held outside Germany itself, particularly German gold held in the United States .
The Bundesbank’s refusal to answer Schall’s questions can only heighten suspicion that use of German gold is central to the gold price suppression policy undertaken largely surreptitiously by the Federal Reserve, U.S. Treasury Department, and Bank of England.
In a letter sent in September 2009 to GATA’s lawyer, in response to GATA’s request under the U.S. Freedom of Information Act for access to the Fed’s gold records, Fed Governor Kevin M. Warsh confirmed that the Fed has gold swap arrangements with foreign banks and insists on keeping them secret:
GATA urges its supporters to bring Schall’s correspondence with the Bundesbank to the attention of financial journalists everywhere and particularly in Germany. This correspondence is another acknowledgement of secret central bank intervention in the gold market and of surreptitious central bank market manipulation generally. Central banks cannot answer questions about their custodianship of national gold reserves without exploding the gold price suppression scheme, and most financial journalists — particularly those at the Financial Times, The Wall Street Journal, The New York Times, the London Times, theAssociated Press, Bloomberg News, Reuters, and the London Telegraph — don’t dare ask such questions lest they commit actual journalism and spoil their cozy relationships with official sources.
Schall’s report on his exchange with the Bundesbank about the German gold reserves is headlined „Some Justified Questions for the German Bundesbank“ and can be found at the ChaosTheorien Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
And here is Max Keiser’s comment from the same day under this link:
Do Germans care that more than 2/3rds of their gold reserves are out of their reach?
Americans who are told that most of Germany ’s gold is held at the NY Fed shrug their shoulders and ask, ‘so what.?’ Is this also true in Germany? As we read in these communiques from the Bundesbank, they confirm what we reported on a couple of years ago. Most of Germany ’s gold is out of Germany ’s reach. But if German’s don’t care, should we? Of course the main point that GATA makes is that the reason for the confusion is that central banks have been hiding illicit sales of non-existent bullion to artificially suppress the price of gold in the service of corrupt banks like JP Morgan. But the gold and silver vigilantes are smashing the dollar cartel with their physical delivery mandates. Gold will soon be trading at it’s inflation adjusted price of $2,500 and the great gold suppression scheme will be over. However, the story will continue for Germany as their national asset – part of a deal struck after WWII – is gone and if they try to collect their gold they will find it impossible. To fight the currency war they will have to buy physical gold in the open market or strike deals with countries like China , Russia and Iran to stay current and relevant – which we can see from recent reports – is exactly what they are doing.
I’ve sent the press office at the Bundesbank the links for the above comments – and received this in return:
Confirmation of receipt 2010/020377 for your e-mail ‚the results / bundesbank statement‘
Dear Mr Schall,
We have received your e-mail and are currently processing it. It has been allocated the number 2010/020377. Please quote the above reference number when making inquiries.
Yours sincerely
DEUTSCHE BUNDESBANK
Wilhelm-Epstein-Strasse 14
60431 Frankfurt am Main
Yesterday I made some comparissons, because there was a kind of Deja vu that not only I had, but also Peter Boehringer, the head of the German Precious Metal Society.This comparisson triggered the following email:
Recycle or die?
Dear Ms. Kreutzer, Ladies and Gentlemen,
I am sorry, but I have three further questions.
As you might know (from „2010/020377“), in my article related to my request under „2010/020273“:
Peter Boehringer mentioned in his response that it was the standard answer of your institution that even deputies of the German parliament receive.
The former member of the Bundestag Martin Hohmann (CDU) asked in 2002 the German governtment (then SPD /Bündnis 90-Grüne): Where are the German gold reserves?
Compare this answer that he received on August 22, 2002, please:
„Die Deutsche Bundesbank hält einen großen Teil ihrer Goldbestände in eigenen Tresoren im Inland. Sie läßt allerdings auch Goldbestände an wichtigen Goldhandelsplätzen wie z.B. London von den dort ansässigen Zentralbanken, z.B. die Bank of England, verwahren. Dies hat sich historisch und marktbedingt so ergeben, weil die Deutsche Bundesbank das Gold an diesen Handelsplätzen übertragen bekam…“
With the one we received in 2010:
„Die Deutsche Bundesbank hält einen großen Teil ihrer Goldbestände in eigenen Tresoren im Inland, weitere Bestände werden insbesondere an wichtigen Goldhandelsplätzen bei den dort ansässigen Zentralbanken verwahrt. Dies hat sich historisch und marktbedingt so ergeben, weil das Gold an diesen Handelsplätzen an dieBundesbank übertragen wurde.“
Take away „London / the Bank of England“ stuff and you’ll get almost identical this:
„The Deutsche Bundesbank keeps a large part of its gold holdings in its own vaults in Germany, while some of its gold is also stored with the central banks located at major gold trading centres. This has historical and market-related reasons, the gold having been transferred to the Bundesbank at these trading centres.“
My three questions:
1) Why do you recycle your answers to different questions at different times – while at the same time refusing to even address most of my question that you’ve received under „2010/020273″?
2) Why did you exclude the “ London / Bank of England“ part in your standard phrase – even though I have asked you specifically about the German gold reserves in England (compare „2010/020273“)?
3) Would you be so polite to send me and Chris Powell / Max Keiser the complete answer that Mr. Hohmann received in 2002, please – in German and in English?
Thank you very much!
Best regards,
Lars Schall.
So far the Bundesbank did not send me a new number for my latest inquiry. But I am sure Max Keiser is right:
“However, the story will continue for Germany as their national asset – part of a deal struck after WWII – is gone and if they try to collect their gold they will find it impossible.“
In the meantime, let us try to crash JPMorgan and buy silver:
http://www.guardian.co.uk/commentisfree/2010/dec/02/jp-morgan-silver-short-selling-crash.
